Their YES! topic
Young people are not interested in finance related topics. How could this be changed?
by Eveline Wuttke, Leibniz Institute for Financial Research SAFE
Some of you may remember a tweet and the following discussion on the internet: Naina (@nainablabla) said in 2015 that she had no idea about taxes, rent or insurance, but that she could write poetry analysis – in four languages.
This tweet can be seen as a complaint about a ‚wrong‘ focus in education, and it suggests that Naina might even be interested in financial economics, but no one ever taught her about it. But, at the same time, research shows that many (young) people are not interested in these topics and are not good at handling finance-related matters. In the worst case, this leads to indebtedness or even over-indebtedness.
Most people agree that financial literacy is essential. For everyone. But it is especially important for young people when they start an independent life: Earning their own money, studying or starting an apprenticeship, having to pay rent, thinking about health insurance, etc. Therefore, young people should be interested and learn. And research shows that it is easier to learn when you are interested in a subject.
Now the interesting questions are:
(1) What is financial literacy, and why is it important?
(2) Are young people interested in financial literacy topics or not – as the headline suggests?
(3) If they are not interested – how could this be changed?